RealtyMogul.com, the real estate marketplace lender, has received a $250 million commitment from large institutional investors that will allow it to expand into commercial mortgages intended to be securitized.
In a press release published last week, the firm said last this funding will allow it to offer two new products to commercial real estate borrowers: one of them is a fixed-rate loan underwritten to CMBS market standards that is priced in the 4% range; the other is a three- to five-year, floating-rate bridge loan with an interest rate in the range of 4% to 6%.
“This is the first time an online marketplace is able to offer a competitively priced CMBS loan,” Jilliene Helman, CEO of RealtyMogul, said in the press release. “This is the first time an online marketplace has introduced a product in the three to four percent range."
In April, RealtyMogul launched its commercial lending division and hired Megan Goodfellow as head of the division. She is responsible for credit risk management on the equity and debt platform, which offers loans of $1 million to $25 million, including private money, bridge and permanent financing on commercial real estate properties.
Goodfellow was previously the director of affordable housing special asset management at Centerline Capital Group, where she was responsible for overseeing more than 50 properties and the restructuring of troubled assets. Prior to that, she served as the chief underwriter and credit officer of the CMBS group of JP Morgan Chase, where she oversaw five regional offices and 30 underwriters responsible for the underwriting and closing of both conduit and balance sheet loans.
RealtyMogul.com partners with institutions that securitize via CMBS (for perm loans) and potentially into a CRE CLO on bridge transactions. The loans, originated via RealtyMogul's commercial lending division will be placed the partner’s warehouse line at close and then sold into a securitization when enough loans have been aggregated. These pools will be rated.